A local congress critter just announced a department got a FP&S grant through the AFG program, for HIRING and equipping a codes inspector?

Can it really be used for hiring?

It can't be right, it said 40K for payroll, benefits, and 6k of the 40k is to be used for equipment.

It's eligible. From the PG:

Code Enforcement/Awareness: Projects that promote the adoption or awareness of building codes, promote code enforcement to improve engineering, or enact fire-related ordinances for new construction. Projects may also include support for conducting inspections, including personnel costs, equipment or training.